This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the statements below is FALSE? A) Project A has a higher y-axis intercept for its NPV profile than mutually exclusive Project B. As long as the profile of Project A is above the profile of Project B, Project A will have a higher NPV value for that particular discount rate. B) Project A has a higher y-axis intercept for its NPV profile than mutually exclusive Project B. This means that Project A has a lower NPV than Project B when the discount rate is zero. C) Project A has a higher y-axis intercept for its NPV profile than mutually exclusive Project B. As we proceed past the crossover rate to the right on the x-axis, Project B's profile will be above Project A's profile. D) Project A and Project B are mutually exclusive. The two projects intersect in terms of NPV at a discount rate labeled the crossover rate. Show Answer Correct Answer: B) Project A has a higher y-axis intercept for its NPV profile than mutually exclusive Project B. This means that Project A has a lower NPV than Project B when the discount rate is zero. 2. Nick, Amaya, and Mason are running a small business together. Why is budgeting important in their financial management? A) Budgeting only helps in controlling the financial resources of their business. B) Budgeting is not important in their financial management. C) Budgeting is only important for their personal finance management. D) Budgeting is important in their financial management because it helps in planning and controlling the financial resources of their business. Show Answer Correct Answer: D) Budgeting is important in their financial management because it helps in planning and controlling the financial resources of their business. 3. What happens when a company is 'profitable' but the collection takes longer than payment to suppliers? A) OK-because it's still profitable. B) The company is in trouble and could go bankrupt. C) Companies need to focus on EBIT. D) The Cash Flow statement will show a negative number. Show Answer Correct Answer: D) The Cash Flow statement will show a negative number. 4. You are allowed to invest in shares of listed companies on the Johannesburg Stock Exchange (JSE). A) True. B) False. Show Answer Correct Answer: A) True. 5. Which ratio measures the efficiency of a company's inventory management? A) Current Ratio. B) Debt Ratio. C) Inventory Turnover Ratio. D) Profit Margin Ratio. Show Answer Correct Answer: C) Inventory Turnover Ratio. 6. Something that you pay is called ..... A) Income. B) An expense. C) A profit. D) Savings. Show Answer Correct Answer: B) An expense. 7. It pertains to the ability of the firm to yield a sufficient amount of return on company sales asset and invested capital. A) LIQUIDITY. B) PROFITABILITY. Show Answer Correct Answer: B) PROFITABILITY. 8. What are the 2 types of credit cards? A) Private Label and General Label. B) Private Label and Public Label. C) Public Label and General Label. D) Plastic and Metal. Show Answer Correct Answer: A) Private Label and General Label. 9. The definition of Pph 22 is a form of withholding or collection of tax carried out by one party against the Taxpayer on income in connection with the following, EXCEPT: A) The sale of goods is very luxurious. B) Purchase goods using APBN/APBD and non-APBN/APBD funds. C) Specialized labor transfer between countries. D) Import of goods/services. Show Answer Correct Answer: C) Specialized labor transfer between countries. 10. Powee Company uses the indirect method in determining the net cash provided by operating activities. During the year, its net income was P105, 600, its accounts payable decreased by P8, 000, its inventory increased by P4, 800, and its accounts receivable decreased by P9, 600. How much is the net cash provided by operations? A) P102, 400. B) P108, 800. C) P128, 000. D) P83, 200. Show Answer Correct Answer: A) P102, 400. 11. The focal point of financial management in a firm is: A) The number and types of products or services provided by the firm. B) The minimization of the amount of taxes paid by the firm. C) The creation of value for shareholders. D) The dollars profits earned by the firm. Show Answer Correct Answer: C) The creation of value for shareholders. 12. I am going to buy a new bike. A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: A) Spending. 13. Bharat Express' specialises in Courier Services and helps business firms to make sure that the goods are made le to the customers at the right place and at the right time. What will be the working capital requirement of the company? A) High. B) Low. C) Moderate. D) Depend on the volume of business. Show Answer Correct Answer: B) Low. 14. The capital structure decision involves: A) Determining the optimal mix of debt and equity financing. B) Minimizing the cost of capital. C) Maximizing shareholder value. D) All of the above. Show Answer Correct Answer: A) Determining the optimal mix of debt and equity financing. 15. I am opening a new bank account today to deposit my birthday money. A) Spending. B) Saving. C) Earning. D) Donating. Show Answer Correct Answer: B) Saving. 16. This is the oldest and common and simplest form of business organization A) PARTNERSHIP. B) SOLE PROPRIETORSHIP. Show Answer Correct Answer: B) SOLE PROPRIETORSHIP. 17. ..... offer members credit cards, checking accounts, low-interest loans, and high interest savings accounts. A) Commercial banks. B) Credit Unions. C) Mortgage Companies. D) Brokerage Firms. Show Answer Correct Answer: B) Credit Unions. 18. Fill in the Blank:Medicaid is a ..... health insurance program to help people who cannot afford health care costs. A) Government. B) Military. C) Personal. D) None of above. Show Answer Correct Answer: A) Government. 19. Jerry's gross pay was $ 525.00. He had the following deductions taken from his pay check (Federal Income Tax $ 78.75, State Income Tax $ 36.75, FICA $ 40.16) What is his Net Pay? A) $ 525.00. B) $ 369.34. C) $ 155.66. D) None of above. Show Answer Correct Answer: B) $ 369.34. 20. What financial evaluation methods are commonly used by financial managers to evaluate potential investments? A) Market analysis and competitor comparison. B) Cost-benefit analysis and break-even analysis. C) Net Present Value (NPV) and Internal Rate of Return (IRR). D) Customer segmentation and customer lifetime value analysis. Show Answer Correct Answer: C) Net Present Value (NPV) and Internal Rate of Return (IRR). ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books